Rupee opens higher at 72.30 against dollar

Fears of escalation of global trade war continues to weigh on the rupee.

New Delhi: Rupee opened marginally higher at 72.30 versus against the US dollar on Tuesday.

The Indian currency had crashed below the 72-mark to end at a life-low of 72.45 against the US dollar on Monday on growing fears of contagion from an emerging-market rout and escalation of global trade war.

Besides, dollar's weakness against some currencies overseas including the euro also supported the rupee, PTI quoting dealers said.

The ongoing free fall of the rupee against the US dollar is credit negative for Indian companies, especially for those that generate revenue in rupees but rely on dollar debt to fund their operations and have substantial dollar-based expenses, Moody`s Investors Service said on Monday.

The Moody`s report follows its annual survey of the US dollar debt exposures of South and Southeast Asian high-yield companies, published in June 2018, which considered the effects of the rupee weakening to around Rs 78 to the US dollar.

WIth Agency Inputs